A new section of the Act provides expanded opportunities for the sale of raffle tickets, which can be issued at a reduced price; in connection with the sale of other tickets; free of charge or in connection with the sale of other tickets; as bonus tickets in connection with the sale of other tickets; and as a price, including auction prices. Meet the eligibility criteria. Three criteria must be met before an organization is eligible to hold a legal raffle in Pennsylvania. The organization must be non-profit. In addition, it must be a non-profit, religious, fraternal or veterans` organization or a civic and service association. Finally, the organization must have existed for at least one year before applying for a raffle permit and must have met one of the requirements. Amendments to the law of 27. January 2014 removed some of the restrictions placed on school-based recall clubs and organizations to raise funds through sweepstakes. A “random auction” is defined as a game of chance in which a participant purchases a ticket for a chance to win as follows: the tickets are placed in a place awarded at a specific price; and the winner of each prize will be determined by a random raffle of a ticket equal to the ticket held by the participant The “raffle auctions” are also referred to as shopping cart draws and Chinese auctions. Small Game of Chance`s individual prize limits have been increased to $2,000 for each individual chance, and all weekly prizes come with a weekly limit of $35,000.
However, for a prize draw, there is a limit of $15,000 per calendar month in the total prizes. A monthly license requires the sale of all opportunities and the allocation of all prizes takes place during the license period. If necessary, apply for a permit. If your prize draw awards a single prize of more than $500 or prizes worth more than $5,000 per month, you must apply to the municipality for a special raffle permit at least 30 days before the ticket sale date. The application must indicate the date and place of the draw, the number of opportunities to be sold, their price, the value of the prizes and the date on which the sale of the opportunities begins. With the exception of voluntary fire, ambulance and rescue organizations, which may have three raffle permits per year, an eligible organization can only obtain two raffle permits in a calendar year. Your organization can avoid requiring approval by staying below the price limits of $500 per price and $5,000 per month. With a standard license, a nonprofit is eligible to run all small legal games of chance, including 50/50 sweepstakes, provided the prize received does not exceed $2,000. If a nonprofit decides to hold a 50/50 raffle with a scheduled prize that exceeds $2,000 or $15,000 per month, it must obtain a “special raffle permit” from the county treasurer, which is a one-time license that covers prizes over $2,000. An eligible licensed organization may receive ten special permits (compared to eight instead of eight) per year. Only one raffle can be arranged as part of each special permit granted. The sum of all prizes awarded does not exceed $150,000 per calendar year (compared to $100,000 per year).
The need for a special permit can be eliminated by holding multiple 50/50 sweepstakes and limiting the prize of each 50/50 draw to $2,000 or less. Do not advertise prices except for members. Pennsylvania law prohibits the promotion of prizes from a prize draw or their current value, except in publications circulating among members of an eligible organization. Actual tickets for the raffle may indicate the type of prize. All participation in the draw must be made in cash. No credit extension can be made for participation in the contest. Pennsylvania State Police have provided a detailed outlet on www.psp.pa.gov/LCE/Pages/Small-Games-of-Chance.aspx that fully explains the new changes to the Small Gambling Act. If you have any questions, please contact Judy Shopp at firstname.lastname@example.org.
Reporting obligations have been removed from the law. However, the records remain, and if a single prize exceeds $600, the record will include the name and address of the winner. The eligible organization will provide each winner with a value from the prize receipt if the prize exceeds $600. It is no longer necessary to maintain a separate bank account for the eligible authorized organization unless the proceeds of gambling exceed $40,000 per year. Employees of organizations no longer have to undergo background checks. A license is required to practice or operate games of chance and must be renewed annually for $125 (previously for $100). Joseph Nicholson is an independent analyst whose publishing achievements include a cover for Futures Magazine and a recurring column in the monthly newsletter of a private currency. He earned a Bachelor of Arts degree in English from the University of Florida and is currently attending San Francisco Law School. Thank you for participating! Please check your inbox or spam folder to confirm your subscription.
Pennsylvania law allows sweepstakes only for the collection of donations by non-profit organizations for charitable or public interest purposes. The organization must have a permit if the draw must have a unit prize of more than $500 or a total prize of more than $5,000 in a month. A majority of electors in a municipality may vote not to grant such permits. In addition, the definition of “public purpose,” which qualifies an entity as an organization eligible to participate in sweepstakes, has been amended to include “youth non-profit sports activities.” Tickets for the raffle must contain at least the date, time and place of the draw. the name of the licensee; the licence number; the cost of the ticket; and a description of the available prices. Tickets must be numbered consecutively with a removable stub printed with the same number; The stub must contain the buyer`s name, address and telephone number; A logbook must be kept indicating who received the tickets for sale. Ask a member to volunteer. The draw must be made by a bona fide member of the organization who cannot be remunerated for his or her service.